Percentile Momentum Indicator

13 בנוב׳

Input Parameters:

lengthPercentile: Defines the period used to calculate the percentile values (default: 30).
lengthMomentum: Defines the period for calculating the Rate of Change (ROC) momentum (default: 10).

Core Logic:

Rate of Change (ROC): The script calculates the ROC of the closing price over the specified period (lengthMomentum).
Percentile Calculations: The script calculates two key percentiles:
percentile_upper (80th percentile of the high prices)
percentile_lower (20th percentile of the low prices)
Percentile Average: An average of the upper and lower percentiles is calculated (avg_percentile).
Trade Signals:

Buy Signal: Triggered when the ROC is positive, the close is above the percentile_lower, and the close is above the avg_percentile.

Sell Signal: Triggered when the ROC is negative, the close is below the percentile_upper, and the close is below the avg_percentile.

Trade State Management:

The script uses a binary state: 1 for long (buy) and -1 for short (sell).
The trade state is updated based on buy or sell signals.

Bar Coloring:

Bars are colored dynamically based on the trade state:
Green for long (buy signal).
Red for short (sell signal).
The same color is applied to the percentile and average percentile lines for visual consistency.